sunset terrace - images3.loopnet.com€¦ · offering memorandum | 8 the asset property name sunset...
TRANSCRIPT
Sunset Terrace740-748 Poli Street, Ventura, CA. 93001
KEVIN HURLEY 626.204.3456 (O)DIRECTOR | CAL DRE #01237798
DO NOT GO ON PROPERTY OR DISTURB TENANTS, ALL SHOWINGS ARE BY APPOINTMENT ONLY
KEVIN LUTZ 626.429.0685 (C)626.204.3475 (O)
DIRECTOR | DRE #00925595
Sunset Terrace
Poli S
treet
North Ash Street
East Mai
n Street
Sunset Terrace
CITY HALL
CONFIDENTIALITY AGREEMENT
All materials and information received or derived from Bridge Investment Group its directors, officers, agents, advisors, affiliates and/or any third party sources are provided without representation or warranty as to completeness , veracity, or accuracy, condition of the property, compliance or lack of compliance with ap-plicable governmental requirements, developability or suitability, financial performance of the property, projected financial performance of the property for any party’s intended use or any and all other matters.
Neither Bridge Investment Group its directors, officers, agents, advisors, or affiliates makes any representa-tion or warranty, express or implied, as to accuracy or completeness of the any materials or information provided, derived, or received. Materials and informa-tion from any source, whether written or verbal, that may be furnished for review are not a substitute for a party’s active conduct of its own due diligence to de-termine these and other matters of significance to such party. Bridge Investment Group will not inves-tigate or verify any such matters or conduct due dili-gence for a party unless otherwise agreed in writing.
EACH PARTY SHALL CONDUCT ITS OWN INDEPEN-DENT INVESTIGATION AND DUE DILIGENCE. Any par-ty contemplating or under contract or in escrow for a transaction is urged to verify all information and to conduct their own inspections and investigations in-cluding through appropriate third party independent professionals selected by such party. All financial data should be verified by the party including by obtaining and reading applicable documents and reports and consulting appropriate independent professionals.
OFFERING MEMORANDUM | 4
Bridge Investment Group makes no warranties and/or representations regarding the veracity, complete-ness, or relevance of any financial data or assumptions. Bridge Investment Group does not serve as a financial advisor to any party regarding any proposed transac-tion. All data and assumptions regarding financial per-formance, including that used for financial modeling purposes, may differ from actual data or performance.
Any estimates of market rents and/or projected rents that may be provided to a party do not necessarily mean that rents can be established at or increased to that level. Parties must evaluate any applicable con-tractual and governmental limitations as well as mar-ket conditions, vacancy factors and other issues in or-der to determine rents from or for the property. Legal questions should be discussed by the party with an attorney. Tax questions should be discussed by the par-ty with a certified public accountant or tax attorney.
Title questions should be discussed by the party with a title officer or attorney. Questions regarding the condition of the property and whether the property complies with applicable governmental requirements should be discussed by the party with appropriate engineers, architects, contractors, other consultants and governmental agencies. All properties and ser-vices are marketed by Pasadena in compliance with all applicable fair housing and equal opportunity laws.
OFFERING MEMORANDUM | 5
TABLE OF CONTENTS
I. THE PROPERTY..........................6
II. THE FINANCIALS....................14
III. THE COMPARABLES................18
IV. THE LOCATION.......................21
OFFERING MEMORANDUM | 6
I.The Property
OFFERING MEMORANDUM | 7
EXECUTIVE SUMMARY
UNITS
12
BLDG. SF
6,663
LOT SF
10,000
YEAR BUILT PARKINGMETERING
1965 INDIVIDUAL(gas & electric)
12(tuck-under)
OFFERING MEMORANDUM | 8
THE ASSET
Property Name Sunset TerraceAddress 740-748 Poli Street
Ventura, CA. 93001Units 12Unit Mix 11 - 1/1’s & 1 - 2/2Parcel Number 073-0-045-180
BUILDING & LAND
Building Size SF 6,663Lot Size SF 10,000Year Built 1965Parking 12 (tuck-under)Utilities *Gas & electric
(paid by tenant)*Water, hot water & trash (paid by owner)
Construction Wood frame/stucco & concrete block
Flooring Vinyl (Kitchen & Bathroom)Carpet (Bedroom & Living Area)Ceramic tile floor (some units)
Walk Score: 86 - Very WalkableAMENITIES
UNIT AMENITIES COMMON AREA AMENITIES
Ocean Views (select)
Laundry Room: 2 washers & 2 dryers (Bondy Service Co.)
Balconies/Patios (7 of 12) Storage Lockers in Parking Area
Open Beam Ceilings (8 of 12)
Gas Stoves/Ovens
EXECUTIVE SUMMARY
THE PROPERTY
OFFERING MEMORANDUM | 9
Bridge Investment Group is pleased to present the opportunity to acquire Sunset Terrace Apartments, a 12-unit building located in Ventura just 1 block from trendy shopping, restaurants, etc. This 2-story walk-up building sits on partial slab foundation and partial raised podium over tuck-under parking. The roof is made up of 3 sections, the first is pitched composite shingle (replaced in 2013) and the other two sections are built-up tar and gravel (one section was replaced in 2004 and the other in 2011).
This serene space consists of eleven 1 bedroom/1 bathroom units & one 2 bedroom/2 bathroom unit totaling 6,663 square feet sitting on a lot size of 10,000 square feet. The 2 bedroom/2 bathroom unit has been completely upgraded with new carpet, ceramic tile floors in kitchen and bathrooms, all new stainless steel appliances, granite counter tops, and all new fixtures throughout. It also has a huge balcony with ocean views. There is copper plumbing throughout. 8 of the units have open beam ceilings, 7 have balconies or patios, and some have partial ocean views. The kitchens have gas stoves/ovens, formica counters or solid-surface counter tops and vinyl floors (several units have ceramic tile floors). Each unit has a gas wall heater and no A/C. There is a common area laundry room with 2 Wash-ers / 2 Dryers that Bondy Service Co. provides on a month-to-month basis. There are also individual storage lockers in the parking area for each tenant.
OFFERING MEMORANDUM | 10
OFFERING MEMORANDUM | 11
OFFERING MEMORANDUM | 12
PARCEL MAP 740-748 Poli Street
NORTH FIR STREET
NORTH ASH STREET
Poli Street
East Main Street
Sunset Terrace
LOCATION MAP
North Fir Street
North Ash Street
Pacific Coast Highway
OFFERING MEMORANDUM | 14
II.The Financials
OFFERING MEMORANDUM | 15
FINANCIAL SUMMARY
LIST PRICE
$3,300,000
PRICE/UNIT
$275,000
PRICE/SF
$495.27
GRM CURRENT/MARKET Expense %CAP CURRENT/MARKET
15.89 / 15.42 4.00% / 4.17% 33%
OFFERING MEMORANDUM | 16
Price $/Unit $/SF GRM CAP Market GRM
Market CAP
$3,300,000 $275,000 $495.27 15.89 4.00% 15.42 4.17%
Down Payment Loan to Value AmortYears Interest Payments$1,650,000 50% $1,650,000 50% 30 4.50% ($8,360)
Units Type Estimated SF Avg Current Rent Current
Rent/SF Total Rent Market Rent
Total Market Rent
5 1 / 1 450 $1,315 $2.92 $6,575 $1,350 $6,7501 1 / 1 480 $1,400 $2.92 $1,400 $1,400 $1,4002 1 / 1 500 $1,375 $2.75 $2,750 $1,400 $2,8003 1 / 1 550 $1,350 $2.45 $4,050 $1,450 $4,3501 2 / 2 1,000 $2,400 $2.40 $2,400 $2,400 $2,400
Scheduled Monthy Rent $17,175 $17,700Laundry $130 $130
Total Monthly Schedule Income $17,305 $17,830Scheduled Gross Income $207,660 $213,960
Less Vacancy 3% $6,230 $6,419Gross Operating Income $201,430 $207,541
Expenses Current MarketReal Estate Taxes 1.042969% $34,418 $34,418Direct Assessments (Actual) $1,091 $1,091Gardener (2017) $2,880 $2,880Insurance (2017) $3,530 $3,530Electric (2017) $893 $893Gas (2017) $1,282 $1,282Water/Sewer (2017) $4,626 $4,626Trash (2017) $2,292 $2,292Maintenance & Repairs est @ 8% SGI $16,613 $17,117Reserves est @ $150/unit/year $1,800 $1,800Total % of SGI Per SF Per Unit Total Total
33% $10.42 $5,785 $69,425 $69,929
Current NOI Mkt NOI Less Debt Cash Flow MktCash Flow Cash/Cash Mkt Cash/Cash$132,005 $137,612 ($100,324) $31,682 $37,288 1.92% 2.26%
FINA
NCIA
L AN
ALYSIS
OFFERING MEMORANDUM | 17
Unit # Type Estimate SF Current Rent
Current Rent/SF Market Rent Market
Rent/SF Occupied Comments
740A 1 / 1 450 $1,275 $2.83 $1,350 $3.00 Yes Patio
740B 1 / 1 450 $1,350 $3.00 $1,350 $3.00 Yes Patio
742A (1) 1 / 1 450 $1,275 $2.83 $1,350 $3.00 Yes Patio
742B 1 / 1 450 $1,350 $3.00 $1,350 $3.00 Yes Patio
744A 1 / 1 450 $1,325(2) $2.94 $1,350 $3.00 Yes Open Beam Ceiling, Balcony
744B 1 / 1 480 $1,400 $2.92 $1,400 $2.92 YES Open Beam Ceiling, Balcony
744C 2 / 2 1,000 $2,400 $2.40 $2,400 $2.40 Yes Open Beam Ceiling, Balcony, Fireplace
746A 1 / 1 550 $1,325 $2.41 $1,450 $2.64 Yes Open Beam Ceiling
746B 1 / 1 550 $1,325 $2.41 $1,450 $2.64 Yes Open Beam Ceiling
748A 1 / 1 550 $1,400 $2.55 $1,450 $2.64 Yes Open Beam Ceiling
748B 1 / 1 500 $1,400 $2.80 $1,400 $2.80 Yes Open Beam Ceiling
748C 1 / 1 500 $1,350 $2.70 $1,400 $2.80 Yes Open Beam Ceiling
Total Monthly Rent $17,175 $17,700
Laundry Income $130 $130
Total Monthly income $17,305 $17,830Scheduled Gross Income $207,660 $213,960
Units Type Unit SF Avg Current Rent
Current Rent/SF
Avg Market Rent
Market Rent/SF Total units Occupied
Units Occupancy %
5 1 / 1 450 $1,315 $2.92 $1,350 $3.00 12 12 100%
1 1 / 1 480 $1,400 $2.92 $1,400 $2.92
2 1 / 1 500 $1,375 $2.75 $1,400 $2.80
3 1 / 1 550 $1,350 $2.45 $1,450 $2.64
1 2 / 2 1,000 $2,400 $2.40 $2,400 $2.40
(1) Tenant gave notice to vacant on or about April 26, 2018. (2) Rent as of 5/1/18. Rent raise notice has been delivered to tenant
RENT RO
LL
OFFERING MEMORANDUM | 18
III. The Comparables
OFFERING MEMORANDUM | 19
Address & Total Units Unit Mix Built Sale Date Price Price/Unit Price/SF Cap Rate GRM1 8 - 2/2 1970 10/25/17 $3,000,000 $300,000 $274.12 3.41% 18.59
808-828 Petit Ave 2 - 3/2
Ventura, CA. 93004
Total Units: 102 6 - 1/1 1965 9/26/17 $1,500,000 $250,000 $347.87 4.30% 14.42
6391 Whipporwill StVentura, CA. 93003
Total Units: 6
3 2 - 1/1 1972 08/17/17 $1,560,000 $312,000 $332.98 3.34% N/A890 Peninsula St 3 - 2/1.5 TH
Ventura, CA. 93001
Total Units: 5
4 8 - 1/1 1928 05/31/17 $2,070,000 $258,750 $396.10 3.75% 16.22138-152 N Crimea St
Ventura, CA. 93001
Total Units: 85 5 - 1/1 1915 05/23/17 $1,900,000 $316,667 $398.74 4.27% 15.15
1311 E Santa Clara St 1 - 4/1.25
Ventura, CA. 93001
Total Units: 6
Total/Averages $287,483 $349.96 3.81% 16.10S Sunset Terrace 11 - 1/1 1965 List Price $3,300,000 $275,000 $495.27 4.00% 15.89
740-748 Poli St 1 - 2/2
Ventura, CA. 93001Total Units: 12
SALE CO
MPA
RABLES
OFFERING MEMORANDUM | 20
SALE CO
MPA
RABLES M
AP
1
3
S4
5
2
OFFERING MEMORANDUM | 21
IV. The Location
OFFERING MEMORANDUM | 22
DEMOGRAPHICS
AVERAGE INCOME
$97,847
MEDIAN INCOME
$77,244
MEDIAN AGE
35.58
POPULATION # PERSONS PER HOUSEHOLD# OF HOUSEHOLDS
841,052 270,460 3.07
OFFERING MEMORANDUM | 23
MARKET OVERVIEW
VENTURA COUNTY, CALIFORNIA
Ventura, officially known as San Buenaventura or “good fortune” in Spanish, was named when it was founded in 1782. This coastal community lies between Los Angeles and Santa Barbara and is known for being the 9th Mission in California. With its endless greenery and 10,000-year history, Ventura offers a lot of adventure.
With some of the world’s best surf spots, Ventura is con-sidered one of the most desirable places to live in the United States. Residents can take advantage of the vi-brant and diverse economy by education, defense, health-care, hospitality and tourism. Extending 32 square miles and serving 109,000 residents, there are 12,000 business and 53,000 employees in Ventura with headquarters for Patagonia, The Trade Desk and Petunia Pickle Bottom.
Home to countless outdoor activities, nightlife and enter-tainment in the downtown area, Ventura offers a walkable, live-work-play environment conveniently located near re-tail, dining and entertainment that are attractive to today’s modern work-force.
EMPLOYMENT BY INDUSTRY # OF EMPLOYEES
Healthcare 9,500Government & Education 9,319Professional & Business Services 7,686Retail 7,082Leisure & Hospitality 4,592Manufacturing & Wholesale Trade 3,166
OFFERING MEMORANDUM | 24
740-748 Poli StreetVentura, CA. 93001
Kevin W. HurleyDirector
CAL DRE #01237709
Kevin LutzDirector
[email protected] (O)626.429.0685 (C)
CAL DRE #00925595